Industry News Roundup December 2020
Friday 18/12 – The Commons Transport Committee launches an investigation into zero emissions vehicles. The Energy Networks Association calls on the government to legislate in order to mandate hydrogen-ready boilers from 2025.
Thursday 17/12 – The Treasury publishes its Net Zero Review interim report, providing initial analysis of the government’s plans to build back greener. Ofgem publishes its methodology for RIIO-ED2, the price control mechanism for electricity distribution which runs for five years from April 2023.
Wednesday 16/12 – The Scottish government updates its Climate Change Plan 2018–2032. Ofgem issues an update on its investigation into Western Power Distribution and its compliance with obligations relating to the Priority Services Register.
Tuesday 15/12 – Ofgem issues a consultation on its draft 2021-22 forward work programme. Drax announces that it has reached an agreement to sell Drax Generation Enterprise Limited, which holds four CCGT power stations, to VPI Holding Limited for £193.3mn.
Monday 14/12 – The government publishes the Energy White Paper with announcements including autoswitching proposals and a UK Emissions Trading Scheme. BEIS launches a consultation on phasing out unabated coal earlier than planned.
Friday 11/12 – The government announces it is planning on publishing a consultation on the future of combined heat and power in 2021. The Commons Treasury Committee issues a call for evidence on changes to HM Treasury’s Green Book, as part of its inquiry into Spending Review 2020.
Thursday 10/12 – Ofgem issues its response to the Second Balancing Services Use of System (BSUoS) Task Force’s recommendations. Ofgem announces Frequency Risk and Control Report is to be introduced from 1 April 2021.
Wednesday 09/12 – The Climate Change Committee publishes its advice for the Sixth Carbon Budget, recommending a budget which requires the UK to achieve a 78% reduction on greenhouse gas levels, relative to 1990, by 2035. Ofgem announces that Renewables Obligation mutualisation was triggered due to a ~£33mn late payment shortfall. This means that the outstanding costs of the scheme have been spread to all suppliers, due to some suppliers being unable to pay their share.
Tuesday 08/12 – Ofgem issues the final determination for the RIIO-2 price control for the five-year price controls for gas transmission, electricity transmission, gas distribution and the electricity system operator. This determines the rate of return energy network companies can make, which affects customer bills.
Monday 07/12 – The Policy Exchange thinktank recommends the government reform the Contracts for Difference (CfD) scheme with a “simplified floor-price CfD” in a new report. The CfD is the government’s main support scheme for low carbon generation.
Friday 04/12 – The National Audit Office says that faster progress is needed if the UK is to achieve net zero by 2050. The government launches a consultation seeking evidence on greenhouse gas removal methods and views on policy mechanisms that could incentivise and facilitate their development.
Thursday 03/12 – The UK will now aim for a 68% reduction in greenhouse gas emissions by 2030, compared to 1990 levels. Ofgem announces BSUoS is to be levied on gross demand from April 2021.
Wednesday 02/12 – Environmental Audit Committee Chair Philip Dunne criticises the government for providing “inadequate” funding for the Green Homes Grant. Ofgem announced that it will be appointing a Supplier of Last Resort for Yorkshire Energy’s ~74,000 domestic customers and small number of non-domestic customers, following the energy supplier’s exit from the market.
Tuesday 01/12 – Former COP26 President Claire O’Neill accuses the government of having a “cavalier attitude” to the preparations around the COP26 climate summit, due to take place in Glasgow next November. More than 70 businesses write a letter to Boris Johnson urging the need for his government to set out a more ambitious emissions target for 2030.
Written By Graham Paul
